2012 (11) TMI 767

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.... inputs on payment of duty which they have taken as credit. Some quantities of imported duty free inputs and indigenously procured inputs have been cleared as such to DTA without using them for manufacture of final products in the E.O.U. after taking permission from the Customs authority in-charge of 100% E.O.U. in terms of paragraph 6.15 of the Exim Policy. 2.2 While clearing the imported inputs as such to DTA, the appellants have paid Customs duty using the CENVAT credit taken on the inputs procured on payment of duty and accumulated by them. Similarly, in respect of indigenously procured goods without payment of duty, when the same was cleared to DTA, they have utilized the accumulated CENVAT credit. 2.3 In pursuance of s....

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....uts as such, the question of invoking extended period of limitation does not arise. In this regard, he submits that the duty to the tune of Rs. 32,43,178/- being duty demanded on imported goods and duty of Rs. 2,16,687/- being duty demanded on indigenously procured goods are within the normal period of limitation. (d)   Further, the learned Advocate submits that they were under bona fide belief that Rule 17 of the Central Excise Rules, 2002 will be attracted in respect of any clearance of the goods including the inputs in view of an order of the Commissioner (Appeals) No. 22/2010 (V-I)-C.E., dated 24-3-2010 wherein the Commissioner (Appeals) has held that Rule 17 is attracted and in respect of the clearance of inputs as such, t....

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....dit Rules specifically refers to the purpose for which the CENVAT credit by an assessee can be utilized. The claim on behalf of the appellant that the inputs cleared by them as such should be treated as on par with final products on the ground that they are required to pay duty on them is also, prima facie, not acceptable. The CENVAT Credit Rules clearly distinguish items like "inputs", "capital goods" and "final products". There appears no scope for entertaining a belief that inputs cleared as such by the manufacturer-assessee could be treated as clearances of final products. 5.2 The present demand relates to the period from April 2005 to September 2009. The belief that they could utilize the CENVAT credit, for payment of duty on i....